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The Irish central bank and financial regulator said on Tuesday Allied Irish Banks will need an additional €7.4bn ($9.9bn) in capital and Bank of Ireland will need an extra €2.7bn.

In a press conference, the central bank and the regulator said these are the levels of equity capital both banks will need to meet the base case target of 7% equity before taking projected asset disposals into account.

They also said that EBS Building Society will need an additional €875m to meet a base case target of 8% core tier 1 capital, also due to bad loans resulting from property lending.

The government has already recapitalised AIB and Bank of Ireland by €3.5bn each, in return for an effective 25% stake in each bank--or preference shares, which it can convert into ordinary shares.

Last month, the state also took an additional 15.7% stake in Bank of Ireland. It was taken in the form of around 184 million shares in lieu of the annual €250m dividend due on the state's €3.5bn recapitalisation.

The central bank and regulator also said the recapitalised institutions should have a target level of 4% core tier-one capital "to meet a stress scenario or a portfolio level sensitivity analysis."